We make no secret that our company, Tennessee Timber Consultants, firmly believes that the very future of our forests depends upon the protection of the individual rights of woodland owners who will make their own informed decisions on all matters pertaining to their lands. TENNESSEE TIMBER NEWS is dedicated to keeping our clients and colleagues informed on current events, as well as political, economic and technical issues that are important to the owners of Tennessee’s private forestlands.

Tennessee Timber Consultantsis among Tennessee’s growing number of private forestry consulting firms offering a full range of professional and technical services needed by woodland owners. With our forestry and marketing staff we bring more than one hundred years of professional forestry and marketing expertise to the table for the benefit of our clients all across Tennessee. We guarantee PROFESSIONAL EXCELLENCE, and you should settle for nothing less. Our staff of Professional Foresters offers this excellence from four offices located across Tennessee. No matter where in the state you are, we have one or more foresters who can serve all your forest management needs.

White oak veneer logs are in high demand and are bringing very favorable prices. We are getting reports that walnut veneer demand and prices have increased. Red oak is favorable but, as always, red oak veneer in Tennessee is mainly sought after in East Tennessee. Yellow-poplar demand is also strong.

Domestic Hardwood Sawtimber

Hardwood sawtimber is in high demand, which can be attributed to market improvements and low inventories, as well as there being a low supply on the market. White oak has continued to strengthen primarily due to strong stave markets. Red oak prices have continued to decrease over the last several months, but is still bringing favorable prices. Tracts containing oak species have attracted high interest. We are also recommending the sale of soft hardwoods and tie quality sawtimber, including gum, maple, and ash, due to market improvements. Again, yellow-poplar demand and prices remain strong for all grades.

Pine Sawtimber

The southern yellow pine sawlog market continues to struggle and will likely continue to do so until yearly housing starts increase significantly. Therefore, we strongly recommend waiting for a market uptick before considering the sale of pine sawtimber.

Hardwood and Pine Pulpwood

Pulpwood is currently in low demand across the board and virtually all producers are on limited delivery quotas. Typically, these prices flucuate on a month-to-month basis depending on weather and availability.

Establishing Your Timber Tax Basis

Austin Carroll, Consulting Forester

Determining a timber tax basis is dependent on how the property was acquired, meaning whether it was purchased, inherited, or gifted. It is extremely important to establish a tax basis in order to prevent paying undue taxes. The following is not a complete guide to determining a tax basis, it is simply an introduction. An accountant should always be consulted when establishing one’s tax exposure on a timber sale.

Determining a tax basis for purchased timberland is fairly simple; subtract a realistic bare dirt value from the purchase price, including all acquisition costs (i.e. legal fees, title opinion, consulting forester fees, etc.) and apply the rest to the timber basis. This becomes a little more complex when other assets (i.e. house, barn, etc.) are involved. It is always a good idea to obtain an appraisal to establish the fair market value of the timber. In fact, landowners should get an appraisal before they even purchase the property to know exactly what they are purchasing and how much it's worth.

Establishing a tax basis for inherited property is similar to purchased property. Typically, if property is inherited, the basis would be the fair market value of the timber on the date of death. An appraisal should be obtained to establish the fair market value of the timber.

Gifted property is where many landowners run into problems with capital gains taxes. When property is gifted, the donor’s basis is also transferred; therefore, the donor’s basis becomes the recipient’s basis. If the property has been in the family for many years, the donor has likely sold timber in the past and possibly does not have a basis, or it is marginal resulting in high tax exposure.

Establishing a timber tax basis should be done when the property is acquired. It is recommended to list the value of bare land and the value of the timber separately in the contract. The value allocated to the timber will be the timber tax basis. However, if this is not done at the time of acquisition, Tennessee Timber Consultants can appraise the standing timber and establish a timber tax basis by essentially growing a forest backwards at an average annual growth rate depending on site conditions specific to the tract.

If you have questions about your tax basis, or any other timber management questions, give us a call at (866) 968-2953 or email me at austin@tennesseetimber.com

Timber Sales On-line

All upcoming timber sales can be viewed from the "Timber Sales On-line" tab on the left-hand side of the page or by simply clicking here. Tennessee Timber Consultants does not buy or sell timber, we act solely as an Agent on behalf of Landowners to market and broker their timber.

We Are Here For You!

We hope that this publication provides you with new insight into some of the important issues and events that are influencing private woodland ownership. Throughout this publication, we hope you have seen what Tennessee Timber Consultants is all about; dedication, commitment and professional excellence for the benefit of our clients. We further hope that you will visit our site again soon for more news for and about Tennessee’s private woodland owners.

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